Four labour regulations – Code on Wages, 2019, Industrial Relations Code, 2020, Code on Social Security, 2020 and Occupation Safety, Health and Working Conditions Code, 2020 – came into effect on 21 November 2025, and aim to simplify and modernise existing labour laws.
The new codes are replacing older laws and bringing in labour reforms, including simplifying the registration and licensing framework, reducing compliance burdens, improving gender representation and encouraging digitisation.
The Code on Wages, 2019 amalgamates the Payment of Wages Act, 1936, the Minimum Wages Act, 1948, the Payment of Bonus Act, 1965 and the Equal Remuneration Act, 1976. The new wages code applies to workers of both organised and unorganised sectors, ensures minimum and fair wages are paid on time, reduces wage disparity and sets the 48-hour week as the maximum working hours.
The Industrial Relations Code, 2020 consolidates the Industrial Disputes Act 1947, Trade Unions Act 1926 And Industrial Employment (Standing Orders) Act 1946. It provides uniform definitions of key terms, statutory recognition of trade unions, brings contract employees on par with permanent employees and simplifies dispute resolution.
The Code on Social Security, 2020 merges nine laws into one, and applies to organised, unorganised, gig and platform workers. It extends benefits – such as life and disability insurance, health and maternity care, provident fund, and gratuity – to workers. It also established the National Social Security Board and National Database of Unorganised Workers.
The Occupational Safety, Health and Working Conditions Code, 2020 replaces 13 central labour laws. It prescribes a set format of appointment letters, ensures annual leave, sets overtime legislation, mandates the constitution of safety committees at factories, extends medical coverage and establishes the National Occupational Safety and Health Advisory Board.
The Indian government said the new labour codes were already benefiting the petroleum, pharmaceutical and export industries.
